Julia Gillard and Kevin Rudd attacked each other's leadership credentials as the Prime Minister announced a Monday morning spill to settle the ALP's bitter civil war "for all time".

Ms Gillard's announcement that Labor Caucus would vote on the leadership at 10:00am on Monday came just after Mr Rudd spoke to the media in Washington about the leadership but stopped short of confirming he would run.

As both contenders laid out their credentials for the job, Ms Gillard said she expected Mr Rudd to stand.

She said she expected to win the ballot, but promised to go to the backbench and "renounce any further ambition for the Labor leadership" if defeated.

"I anticipate that Mr Rudd will also be a candidate in this ballot," she said.

"I ask him to give the same undertaking - that if he does not win this ballot that he will go to the backbench and renounce any further claims to the leadership and act in the interests of the Australian Labor Party and of our nation."

Speaking to reporters in Washington just before climbing on a plane to return to Australia, Mr Rudd said he had had many "encouraging" conversations with supporters back in Australia.

"Overnight, I had many conversations with members of Caucus and I must say I am pleased and encouraged by the support I have received," he said.

"They regard me as the best prospect to lead the Australian Labor Party successfully to the next elections, to save the Australian Labor Party at those elections and to save the country from the ravages of an Abbott government."

Mr Rudd said he would consult more with colleagues and make an announcement on his return to Australia. He is expected to arrive in Brisbane on Friday morning.

"I must now return to Australia, aircraft await," he told the press conference.

"I will make a full statement on my future on the question of the Australian Labor Party leadership in Australia, that is the right place to do it."

But he gave every indication that he intended to contest the leadership, criticising Ms Gillard's performance and laying out his vision for leading the party and the government.

"I do not believe that Prime Minister Gillard can lead the Australian Labor Party to success at the next election, that is a deep belief," he said.

"I believe it's a view also shared right across the Australian community."

That was rejected by Ms Gillard, who believes she can lead the Government to victory.

"I am confident that we can present at the next election in 2013 and that we can win that election provided we use Monday's opportunity to end this for all time and then we get on with the job of delivering good government for the Australian people," she said.

The Prime Minister has, for the first time, joined her senior colleagues in accusing Mr Rudd of running a stealth campaign to undermine her.

"It is now evident to me and I think it is evident to the Australian people that there has been a long-running destabilisation campaign here to get to this point where Kevin Rudd is clearly going to announce that he wants to seek the Labor leadership," she said.

She also hit out at Mr Rudd for "sabotaging" the 2010 election campaign and for leaving the government in "paralysis".

"The government that Kevin Rudd had led had entered a period of paralysis," she said.

"Kevin Rudd as prime minister always had very difficult and very chaotic work patterns."

Her statement echoed those of other Labor heavyweights who have launched a series of personal attacks against Mr Rudd since he announced he was resigning as Foreign Minister yesterday.

"I am shocked and disappointed by the tone and content of the personal attacks made against me overnight," Mr Rudd said in Washington.

"I do not believe that these sort of attacks have a place in our political life.

And the man who has consistently outpolled Ms Gillard as most popular Labor leader urged the public to have a say in the challenge.

"When this comes to a head it really does need to be recognised that the future government of Australia is not about the power of factions, it's about people's power, and the people of Australia have a view on the future leadership of their country," he said.

"I would urge each and every one of them to make that view known across the country - pick up the phone, talk to MPs, talk to your media outlets, express your view.

"Ours is a democracy, in the open spaces, not behind closed doors and not governed by faceless men."

While attacking each other today, Mr Rudd and Ms Gillard also laid out their credentials for leadership.

The Prime Minister listed a number of difficult policy areas that she has managed to navigate since taking on the job, including the mining tax and the carbon pricing scheme, highlighting her personal traits as a selling point.

"That takes courage, it takes method, it takes purpose, it takes discipline, it takes inner personal fortitude and strength and I will bring all of that to the table," she said.

Mr Rudd focused on the economy, saying people needed a Government "in strong and stable hands".

"Experience and competence and discipline will be needed in terms of our national economic management, fully wired to the threats which lie out there in the global economy."

But he also targeted the internal machinations of his own party, saying it needs reform to ensure it "is equipped for the tasks of the 21st century".

"That means a party of the future which is not governed by the faceless men," he said.

Free trade is the oldest argument in federal politics and the issue that literally defined the federation era but opposition exists to the TPP, courtesy of the Investor-State Dispute Resolutions clause.